Plettenberg Bay Third Quarter Figures - Interesting Insights

The third quarter sales figures (July to September 2024) released by the Deeds Office, show that the overall property sales in Plettenberg Bay are down 7.6%, compared with the same quarter last year.

“Interestingly, the comparison of quarterly sales figures from 2018 to 2024 shows that the market has continued to correct after Covid and the post-Covid surge, and is now showing figures similar to those seen pre 2020,” says Helen Ward, Principal of Helen Melon Properties, a boutique agency in Plettenberg Bay.

Some price brackets and areas show an upward trend, such as the Sectional Title market, where, according to Ward, sales in the boutique property, The Plett Quarter, boosted figures. Baron’s View also showed an increase in sales during the third quarter, when looking at houses only and not stands. This could reflect a growing desire to live in a gated, secure estate, Ward adds.

Note that 2020 Q2 the Real Estate Industry was shut down due to the Covid lockdown.

When comparing the figures for the first three quarters sales (January – September 2024) to the same period in 2023, these are down by 5.5% with 424 sales in 2024 and 449 sales in 2023. “With the general elections behind us, we are finally starting to see a more buoyant market”, says Ward.

Third Quarters Sales by price bracket

In the R1m - R3m price bracket registrations (sales) were down the most, percentagewise, at 25.8%. “A possible reason for this is a lack of stock of houses and properties in the so-called entry level market,” comments Ward.

The R3m - R4m bracket showed a 5.5% increase with 19 properties sold.

The R4m - R5m bracket saw a 40% increase, with only four more houses sold compared with the same quarter last year.

The R5m - R7m saw a 77% increase, from a relatively small base, with 10 more properties sold this third quarter, compared with last year.

Sales in the top end (R10m and above) for the overall period have dropped off by 33% with 9 sales in 2024 taking place, compared with 14 in 2023.

• Seaside Longships had two sales in 2024 in bracket R15million and above, compared with seven in 2023.
• Keurboomstrand had three sales in 2024 in the bracket R15million and above, compared with none in 2023.
• Brackenridge had one sale in this bracket in 2024, compared with none in 2023.

Sectional Title sales

 Plettenberg Bay’s sectional title market, down for the third quarter of 2024 compared with the same period last year, has been “saved” from a further decline by the launch of the new exclusive Plett Quarter sectional title development in Main Street. “The sectional title market figures (above R5m) make for some interesting reading”, says Ward. “If it wasn’t for the launch and release of sectional title properties in the Plett Quarter, this segment of the market would have reflected a 30% decrease.”

In the sectional title market for the third quarter, 10 Sales took place above R5million:

• 5 in the Plett Quarter
• 3 in De Meermin
• 1 in New Sanctuary
• 1 in the Milkwood Centre

“Looking at the price by square metre the older buildings are heavily discounted on the newer buildings,” says Ward. A prime example is a 362m2 apartment in New Sanctuary which sold for R5 200 000.00 vs a 103 m2 apartment in the Plett Quarter sold for R10 304 348.00

The total sectional title sales for 2024 so far are down by 5,4%. There were 140 sales in 2024, compared with 148 in 2023.  In total, 2024 saw 21 sectional title sales above R5m, while in 2023 there were only two. Of these sales in 2024, 15 were in the Plett Quarter. 

Sales by area

When comparing overall figures for the first three quarters of 2023 and 2024, the five top sales areas were:

• Upper Central (51 sales, compared with 28 sales), an 82% increase. Fifteen of the 2024 sales took place in the Plett Quarter which has attributed to increased sales.
• Second was Keurboomstrand, down 7% with 49 sales, from last year’s 53 sales during the first three quarters.
• Then Bowtie, up 27% with 37 sales, compared with 29 in the previous year.
• Seaside Longships reflected a slide of 34%, with 32 sales in the first three quarters of 2024, compared with the 49 for the same period last year.
• Bitou Nu and the N2 toward Knysna road area, mostly farms and small holdings, was down 14% with 29 sales compared with the 34 sales in the same period last year.

What’s happening in the rest of the property market in South Africa?

Homeowners can brace themselves to dig deeper in the coming months as the new rates regime takes hold. Plettenberg Bay itself faces a 6% average increase in rates and appears to be buffered from some of the startling revelations made by the Organisation Undoing Tax Abuse (Outa) about developments elsewhere in South Africa.

After the release of figures following the most recent General Valuation Roll (GVR), Outa noted that hundreds of thousands of properties had been overvalued—some by as much as 70%—leading to massive jumps in rates and taxes. Outa indicated that some property owners in smaller municipalities have seen increases of 2000%.

Despite these alarming property rate increases, the real price pains for property owners have been in water and electricity rates.

Stats SA added electricity tariffs recorded an average growth rate of 10.5% a year from 2009 to 2024, while water tariffs are up by an average of 10.2% a year.

Western Cape Minister of Infrastructure, Tertius Simmers, recently told Garden Route Ratepayers’ Alliance that water infrastructure in municipalities required “massive” upgrades. The national department cannot fund it all, so there is more pressure on municipalities.

The message? Consumers will have to foot some of these bills.

The good news is that the Reserve Bank Governor Lesetja Kganyago announced a lowering of the Repo rate by 25 basis points to 7,75% after the Monetary Policy Committee meeting on Thursday 21 November. This cut brings some relief for homeowners with home loans.